African Capital Markets Workshop: “Sovereign Debt Issuance: going the domestic or international route?”

Date: Tuesday, May 25, 2010
Room: Casino, Salle Ivoire I
Time: 2:30 p.m. – 4:30 p.m.


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Moderator

  • Mr. Pierre VAN PETEGHEM, Treasurer, AfDB

Speakers

  • Mr. Serge ENAME NSOLET, Directeur Général de la Comptabilité Publique, Ministère du Budget, des Comptes Publics et de la Fonction Publique chargé de la Reforme de l’Etat, Gabon
  • Ms. Yvonne QUANSAH, Director Finance Sector Division, Ministry of Finance and Economic Planning, Ghana.
  • Mr. Mamadou SARR, Directeur de la Comptabilité Publique et du Trésor, Ministère des Finances, Sénégal.
  • Mr. Dan BERMAN, Executive Director, JP MORGAN CHASE
  • Mr. Jackson KITILI, Director, Monetary Operation and Debt Management Department, Central Bank of Kenya (tbc)

Several African countries have tapped international capital markets before and during the recent global economic and financial crisis. Others are actively planning Eurobond issues, especially given renewed  investor appetite for emerging market risk in the aftermath of the crisis. This crisis has highlighted the need for all categories of borrowers to diversify and optimize fund raising activities. This is even more critical for several African countries within the constraint of debt sustainability after massive debt relief exercises and limited concessional resources. But it is also argued that this international borrowing comes at a significant cost for several African sovereigns, it risks triggering another debt crisis especially for HIPCs, and is sometimes done at the expense of sufficient focus on the development of domestic  local currency markets. During the workshop, the panel will debate on countries debtmanagement approaches and strategic considerations and challenges for international and domestic issuance.

Objectives of this event are: (i) To discuss strategic debt management considerations, with respect to  the mix of resources available from domestic, international capital markets and concessional channels within the constraint of debt sustainability; (ii)To share experiences fromAfrican countries that have developed their bond markets and launched bond issues in international markets as a way to finance their development needs; and (iii) To debate on whether international debt issuance should be brought back domestically, and the steps required for the domestic route to be viable alternative.